Bonk (BONK), Solana’s second-largest meme coin after Trump Coin, is showing signs of weakness as smart money investors and crypto whales reduce their exposure, triggering bearish signals across the board.
Bonk is currently trading at $0.00002053, down roughly 20% from its monthly high. Technical patterns and on-chain data suggest the token may be headed for a deeper correction unless market sentiment reverses.
Smart Money and Whales Signal Risk-Off Mood
Blockchain analytics firms Nansen and Santiment have reported a notable decline in Bonk holdings by both smart money traders and large whale wallets. According to Nansen, smart money investors known for buying bottoms and exiting before tops have trimmed their Bonk holdings from 33.4 billion tokens in April to just 15.6 billion.
Whales have also reduced their holdings by 15% in the last 30 days. Wallets holding between 1 million and 10 million BONK have sold off 500 million tokens since December. Simultaneously, addresses with between 10 million and 1 trillion BONK show shrinking balances, suggesting broad-based caution.
Rising Exchange Balances Add to Selling Pressure
Adding to the bearish sentiment, Bonk’s exchange balances have climbed from 19.4 trillion to 19.6 trillion tokens this month. Historically, higher exchange balances imply increased sell-side activity as investors move tokens from cold wallets to exchanges typically in preparation to sell.
Technical Breakdown Looms
The four-hour price chart for Bonk paints an ominous picture. After peaking at $0.00002577, the token formed a double-top pattern, a classic reversal signal, followed by a drop to $0.00001815, a level that aligns with an ascending trendline from early April.
Since then, Bonk has entered a bearish pennant formation characterized by a sharp drop followed by a converging triangle. As the pattern nears a breakout point, the risk of a downward move increases. A confirmed break below $0.00001815 would likely open the path toward the 50% Fibonacci retracement level of $0.00001730.
Outlook: Short-Term Pain, Long-Term Uncertainty
While meme coins often see sharp volatility driven by sentiment, the current data from top analytics platforms suggests Bonk could be entering a period of sustained downside unless new bullish catalysts emerge. With both smart money and whales exiting, and technical indicators flashing warning signs, traders may be advised to proceed with caution.
